2010 (7) TMI 975 - HC - VAT and Sales Tax

Summary

Issues involved: Constitutional validity of the Himachal Pradesh Tax on Entry of Goods into Local Area Act, 2010.

The High Court deferred the final hearing due to a similar issue pending before the Supreme Court regarding the constitutional validity of the Himachal Pradesh Tax on Entry of Goods into Local Area Act, 2010. The Supreme Court, in a related matter, ordered the assessee to pay 1/3rd of the assessed liability under the Act as an interim measure. The petitioner is required to pay only 1/3rd of the assessed amount for now, while providing security for the remaining 2/3rd. The amount paid by the assessee is to be treated as a deposit, not as tax, until the final disposal of the case. If the State loses the case, it must refund the amount with interest. Conversely, if the assessee loses, they are liable to pay the balance amount with interest. Importantly, this order applies specifically to the petitioner in this case.